EXERCISE SOLUTION 7.

Statement Cash Flow Balance Sheet

Arm the Sales Budget Arming the Production Budget Arm Budget Direct Depletion Arm Budget Raw Material Purchasing Direct Arm Budget Direct Labor Arm GIF Budget Arming the Operating Expense Budget Inventories Arm Budget

SALES BUDGET
Laboratorios Regionales S.A
I SEMESTER Di 6000 uni 100.00 600,000 3,350,000

SALES BUDGETED (*) SALE PRICE TOTAL TOTAL SEMESTER TOTAL ANNUAL

$ $

D 10000 uni 200.00 $ 2,000,000 $ $

PRODUCTION BUDGET
Laboratorios Regionales S.A

SALES BUDGETED (+) INV FINAL (-) INV INITIAL PRODUCTION

D 10000 uni 10000 uni -10000 uni 10000 uni

I SEMESTER Di 6000 uni 5000 uni -5000 uni 6000 uni

PRODUCTION ANNUAL

BUDGET OF RAW MATERIAL REQU

Laboratorios Regionales S.A
I SEMESTER D Di Z TOTAL COST BY KG TOTAL RAW MATERIAL A 150000 uni 78000 uni 50000 uni 278000 uni 2.00 556,000

$ $

MATERIALS PURCHASE BUDG

Laboratorios Regionales S.A
I SEMESTER MATERIAL REQUIREMENT FINAL INVENTORY WANTED NEC TO BUY INITIAL INVENTORY TOTAL TO BUY COST PER KG COST OF PROCUREMENT RAW MATERIALA 278000 uni 10000 288000 uni -10000 278000 uni 2.00 556,000

$ $

LABOR BUDGET
Laboratorios Regionales S.A
I SEMESTER D REQUEST FOR PRODUCTION HRS REQUIRED BY PRODUCT TOTAL HOURS COST PER HOUR COST OF MOD TOTAL ANNUAL 10000 uni 3 hrs 30000 hrs 10.00 300,000

$ $

OVERHEAD BUDGET PRODUCT

Laboratorios Regionales S.A
depreciation insurance maintenance energy several TOTAL RATE OF APPLICATION = GIF TOTAL HRS MOD $ 232,000 58000 hrs RATE OF APPLICATION = $ 4.00

RATE OF APPLICATION =

BUDGET AND ADMINISTRATIVE EX

Laboratorios Regionales S.A
depreciation Salaries and Wages Commissions several Interest on obligations TOTAL

Commissions = Commissions =$

5% VENTAS PROYECTADAS 284,000

INVENTORY FINAL BUDGE

Laboratorios Regionales S.A
COST UNIT RAW MATERIAL A RAW MATERIAL B RAW MATERIAL C MOD GIF TOTAL $ $ $ $ $ $ D 31.50 18.00 39.60 33.00 12.00 134.10

BUDGET RAW MATERIAL INVENTORY AND FI

Laboratorios Regionales S.A
INV FINAL RAW MATERIALA RAW MATERIAL B RAW MATERIAL C D Di Z TOTAL 8000 4000 3000 7000 3000 2000

BUDGET COST OF SALES

Laboratorios Regionales S.A
I SEMESTRE 1,468,400 460,000 116,000 2,044,400

RAW MATERIAL REQUIRED (+) OD HAND (+) EXPENSES IF (=) COST OF PRODUCTION (+) INV ART ORIGINAL ENDING (=) ENDED ART AVAILABLE (-) ART FINAL INVENTORY TERMIN (=) COST OF SALES BUDGETED

$ $ $ $

STATEMENT BUDGETED
Laboratorios Regionales S.A
to December 31, 2002

SALES (-) Cost of sales (=) GROSS PROFIT (-) OPERATING EXPENSES (=) OPERATING INCOME (-) 15% JOB SHARING (=) TAXABLE (-) 22% INCOME TAX (=) NET INCOME

CASH FLOW STATEMENT BUDG

Laboratorios Regionales S.A
to December 31, 2002 OPENING BALANCE (+) INFLOW CHARGED SALES (90%) YEAR SALES TOTAL TICKET (=) AVAILABLE

(-) OUT OF CASH PAYMENT OF MACHINERY CTS PAYMENT PAYABLE SUPPLIER TAX YEAR CURRENT YEAR TAX DIRECT LABOR GIF (WITHOUT DEPRECIATION) OPERATING EXPENSES (SIN depreciates) PAYMENT OF PURCHASES OF RAW MATERIAL (60%) TOTAL OUTPUT (=) CASH BALANCE

BALANCE
Laboratorios Regionales S.A
At December 31, 2001

ASSETS CURRENT cash customers Material inventory Term Art Inventory TOTAL CURRENT NO CURRENT ground Plant and Equipment Accumulated Depreciation TOTAL NON-CURRENT

$ $ $ $ $ $ $ $ $

1,919,176 568,000 42,000 1,363,400 3,892,576 550,000 1,050,000 (160,000) 1,440,000

TOTAL ASSETS

5,332,576

EXERCISE SOLUTION 7.6

SALES BUDGET
Laboratorios Regionales S.A
I SEMESTER Z $ $ $ 5000 uni 150.00 $ 750,000 $ 3,350,000 II SEMESTER D Di 5000 uni 4000 uni 220.00 $ 120.00 $ 1,100,000 $ 480,000 $ $ 5,680,000

Z 5000 uni 150.00 750,000 2,330,000

PRODUCTION BUDGET
Laboratorios Regionales S.A

I SEMESTER Z 5000 uni 5000 uni -5000 uni 5000 uni D 5000 uni 7000 uni -10000 uni 2000 uni

II SEMESTER Di 4000 uni 3000 uni -5000 uni 2000 uni

Z 5000 uni 2000 uni -5000 uni 2000 uni

D 12000 uni

ANNUAL Di 8000 uni

Z 7000 uni

BUDGET OF RAW MATERIAL REQUIREMENT

Laboratorios Regionales S.A
I SEMESTER II SEMESTER RAW MATERIAL B RAW MATERIAL C RAW MATERIAL A RAW MATERIAL B 60000 uni 90000 uni 30000 uni 12000 uni 42000 uni 24000 uni 26000 uni 14000 uni 30000 uni 25000 uni 20000 uni 12000 uni 132000 uni 139000 uni 76000 uni 38000 uni $ 2.70 $ 4.00 $ 2.10 $ 3.00 $ 356,400 $ 556,000 $ 159,600 $ 114,000

MATERIALS PURCHASE BUDGET

Laboratorios Regionales S.A
I SEMESTER II SEMESTER RAW MATERIALB RAW MATERIAL C RAW MATERIAL A RAW MATERIAL B 132000 uni 139000 uni 76000 uni 38000 uni 15000 5000 8000 4000 147000 uni 144000 uni 84000 uni 42000 uni -15000 -5000 -10000 -15000 132000 uni 139000 uni 74000 uni 27000 uni $ 2.70 $ 4.00 $ 2.10 $ 3.00 $ 356,400 $ 556,000 $ 155,400 $ 81,000

LABOR BUDGET
Laboratorios Regionales S.A
I SEMESTER DI 6000 uni 1 hrs 6000 hrs $ 10.00 $ $ 60,000 $ II SEMESTER DI 2000 uni 2000 uni 3 hrs 1 hrs 6000 hrs 2000 hrs 11.00 $ 11.00 66,000 $ 22,000 $

Z 5000 uni 2 hrs 10000 hrs 10.00 $ 100,000 $

592,000

OVERHEAD BUDGET PRODUCTION

Laboratorios Regionales S.A
$ $ $ $ $ $ 100,000 5,000 65,000 52,000 10,000 232,000

BUDGET AND ADMINISTRATIVE EXPENSES

Laboratorios Regionales S.A
$ $ $ $ $ $ 10,000 200,000 284,000 13,000 30,000 537,000

INVENTORY FINAL BUDGET

Laboratorios Regionales S.A
COST UNIT $ $ $ $ $ $ Di 27.30 21.00 17.60 11.00 4.00 80.90 $ $ $ $ $ $ COST UNIT Z 21.00 18.00 22.00 22.00 8.00 91.00

BUDGET RAW MATERIAL INVENTORY AND FINISHED PRODUCTS

Laboratorios Regionales S.A
COST UNIT $ $ $ $ $ $ 2.10 3.00 4.40 134.10 80.90 91.00 $ $ $ $ $ $ $ INV FINAL IN DLARES 16,800 12,000 13,200 938,700 242,700 182,000 1,405,400 TOTAL INVENTORY Inventario 42,000 Final Mate prima Inventario 1,363,400 Final Prod Termi 1,405,400

$ $

BUDGET COST OF SALES

Laboratorios Regionales S.A
I SEMESTRE $ $ $ $ II SEMESTRE 432,000 132,000 116,000 680,000 TOTAL

$ $ $ $ $

2,724,400.00 150,000.00 2,874,400.00 (1,363,400) 1,511,000.00

STATEMENT BUDGETED
Laboratorios Regionales S.A
to December 31, 2002

$ $ $ $ $ $ $ $ $

5,680,000 (1,511,000.00) 4,169,000 (537,000) 3,632,000 (544,800) 3,087,200 (679,184.00) 2,408,016.00

CASH FLOW STATEMENT BUDGETED

Laboratorios Regionales S.A
to December 31, 2002 $ $ $ 5,112,000 50,000 $ $ 5,162,000 5,212,000 50,000

$ $ $ $ $ $ $ $

50,000 150,000 50,000 679,184 592,000 132,000 527,000 1,112,640 $ $ (3,292,824) 1,919,176

BALANCE
Laboratorios Regionales S.A
At December 31, 2001

LIABILITIES SHORT TERM suppliers Notes payable TOTAL SHORT TERM LONG-TERM Obligations payable TOTAL LIABILITIES EQUITY Capital contributed Capital won Contribution to capital fut TOTAL CAPITAL TOTAL LIABILITIES + EQUITY

II SEMESTER RAW MATERIAL C 18000 uni 8000 uni 10000 uni 36000 uni $ 4.40 $ 158,400

II SEMESTER RAW MATERIALC 36000 uni 3000 39000 uni -5000 34000 uni $ 4.40 $ 149,600

II SEMESTER Z 2000 uni 2 hrs 4000 hrs 11.00 44,000 592,000

$ $

TOTAL

$ $ $

2,724,400.00 150,000.00 2,874,400.00 (1,363,400) 1,511,000.00

50,000

5,162,000 5,212,000

(3,292,824) 1,919,176

$ $ $ $ $

741,760 544,800 1,286,560 150,000 1,436,560

$ $ $ $ $

1,390,380 2,488,641 16,995 3,896,016 5,332,576